12BS Chapter 5 Supply

1

Draggable item		Corresponding Item
External Shock		quantity of a good or service that a producer is willing and able to supply the market at a given price
Supply		as the selling price of a product rises, so businesses expand supply to the market
Subsidy		any form of government support—financial or otherwise—offered to producers
The basic law of supply		a significant and often unexpected change outside a firm's control

1

What does technological change encourage?

4